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Costco eyes North Dallas tower purchase – The Dallas Morning News

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A bankrupt Houston real estate investment trust has a unique buyer for one of its properties.

Hartman SPE, a unit of Houston’s Silver Star Properties REIT, has been selling off its office and retail buildings to focus on self-storage investments.


Buy/sell, rent/lease residential &
commercials real estate properties.

Hartman has received an offer to sell its 10-story North Central Plaza I office tower on U.S. Highway 75 to the building’s next-door neighbor – Costco.

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Costco has agreed to pay $14.25 million for the almost 200,000-square-foot high-rise built in 1982, according to bankruptcy court filings. The building sits on about four acres on the west side of U.S. 75 just south of LBJ Freeway.

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Costco built its store south of the tower in 2017 on about 14 acres, according to county tax records. The discount store totals 152,000 square feet.

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Costco made the highest offer for the North Central Plaza office tower on U.S. 75.

“I believe that the debtor is unlikely to receive a higher or better offer; the purchase agreement represents the best offer obtainable at this time and under current market conditions,” Hartman SPE president David Wheeler said in a filing with the bankruptcy court requesting approval of the sale.

CBRE Group marketed the building for sale.

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Real estate brokers speculate that Costco could tear down the office tower to expand its retail footprint or utilize the building for other office uses, according to a report from real estate data firm CoStar Group.

In the Dallas area, the Hartman real estate investment trust owned 10 office buildings and three shopping centers at the start of 2023. The company recently sold one of its North Texas shopping centers.

Hartman filed for bankruptcy protection with debts of more than $200 million following a legal dispute with the real estate investment firm’s founder, Allen Hartman.

“The filing will allow Hartman SPE to conduct an orderly sale of its assets to pay its undisputed creditors in full, complete the refinance of its maturing senior indebtedness, and maximize capital available for Silver Star’s redeployment into the self-storage asset class,” according to the bankruptcy announcement.

At the start of this year, Silver Star owned 44 commercial properties with almost 7 million square feet in Dallas, Houston and San Antonio.

Along with North Central Plaza, Hartman owns the Gateway Tower on North Central Expressway in North Dallas, Three Forest Plaza office tower near Forest Lane in Dallas, the Skylark Tower in Arlington and the Richardson Heights and Promenade North shopping centers in Richardson.

The bankruptcy court has approved Hartman’s sale of the Gateway tower at 8111 LBJ Freeway for $14.1 million to Hamilton Commercial LLC. The 15-story high-rise at the northwest corner of LBJ and U.S. 75 was built in 1982 with 266,000 square feet.

Hartman in October sold the Prestonwood Park shopping center in Plano.

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Hartman is also selling the Gateway Tower on LBJ Freeway.(Younger Partners. )

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